MONEY: Philippine Stock Exchange Approved Cebu Pacific IPO

Yes, you heard it right. After they announced their desire to hold their Initial Public Offering (IPO), Cebu Pacific Air Lines has finally got PSE’s approval. The said approval was done the PSE board directors last Wednesday. The listing of Cebu Pacific into the PSE bourse is tentatively set on May 4 this year.

Cebu Pacific Air, a unit of conglomerate JG Summit Holdings Inc will be offering 125.25 Million shares at the maximum price of 95 pesos.

Cebu Pacific Air’s primary targets were international investors but will also offer shares for the local ones. Funds that will be generated by the IPO will be used in their further expansion. Currently, with a fleet of 29 aircrafts, Cebu pacific is now serving 50 domestic and 21 international destinations. The numbers are expected to increase as the market for air travel is expected to grow in the coming years.

Cebu Pacific initially planned the IPO way back in 2008 but the unexpected economic downturn during that year prompted the company to postpone their plans. With the good economic signs showing up nowadays, it seems to be the most appropriate time to do their original plan.

Comments

Gosh! I was researching the net and JGS Stocks are now a hot buy. trading at the local Philippine bourse as of 3/29/10 is P10.75 and at todays US dollar rate is .023558. The last trade of this stock in the OTC(US)exchange is .15 US cents and that was last Sept. 2009!